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U.K. Households Can Weather Gradual Rate Increases, BOE Says

U.K. household spending will hold up once interest rates start to increase, according to the Bank of England, citing a survey of British consumers it commissioned.

While borrowers would cut spending in response to a higher benchmark rate, that would be partly offset by higher spending by savers, the BOE said. The share of borrowers with high debt servicing costs would also rise, though this would be below previous peaks.